Green Dot 2014 Annual Report Download - page 45

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Comparison of Years Ended December€31, 2014 and 2013
Operating Revenues
The following table presents a breakdown of our operating revenues among card revenues and other fees, cash
transfer revenues and interchange revenues as well as contra-revenue items:
Year Ended December 31,
2014 2013
Amount
% of Total
Operating Revenues Amount
% of Total
Operating Revenues
(In thousands, except percentages)
Operating revenues:
Card revenues and other fees $253,155 42.1%$227,227 39.6%
Cash transfer revenues 179,289 29.8 183,359 32.0
Interchange revenues 178,040 29.6 171,757 29.9
Stock-based retailer incentive compensation (8,932)(1.5)(8,722)(1.5)
Total operating revenues $601,552 100.0%$573,621 100.0%
Card Revenues and Other Fees — Card revenues and other fees totaled $253.2 million for the year ended
December„31, 2014, an increase of $26.0 million, or 11%, from the comparable period in 2013. The increase was
primarily the result of higher monthly maintenance fees of $17.9 million, driven by growth in the number of active cards
in our portfolio and favorable mix impacts, as a greater proportion of these fees were derived from our Green Dot-
branded products, which have a higher average maintenance fee. The monthly maintenance fee increase also benefited
from $5.6 million of additional fee revenue from the removal of courtesy fee waivers on certain accounts during the
first quarter of 2014. Card revenues and other fees also increased due to an increase of $5.0 million in transaction-
based fees, driven by growth in the number of our products with this type of fee structure, and an increase of $4.1
million in new card fee revenues, driven by period-over-period growth in new cards activated.
Cash Transfer Revenues — Cash transfer revenues totaled $179.3 million for the year ended December„31, 2014,
a decrease of $4.1 million, or 2%, from the comparable period in 2013. Although we had period-over-period growth
of„3%„in the number of cash transfers sold, we had a greater number of fee-free cash transfers as compared to the
same period in 2013. The increase in fee-free cash transfers was driven by customer adoption of one of our products
at Walmart. As discussed above under "Financial Results and Trends," we expect to phase out the PIN reload method
of adding cash to prepaid cards. As such, the current MoneyPak PIN product will be fully replaced by other methods
of card reloading by the end of the first quarter of 2015. We therefore expect our cash transfer revenues to decline on
a year-over-year basis in absolute dollars and as a percentage of revenues.
Interchange Revenues — Interchange revenues totaled $178.0 million for the year ended December„31, 2014,
an increase of $6.2 million, or 4%, from the comparable period in 2013. The increase was primarily the result of period-
over-period growth of 6% in purchase volume, partially offset by a slight decline in the effective interchange rate we
earn on purchase volume. This average rate decline was the result of a shift in the mix of payment networks and
payment types.
Stock-based Retailer Incentive Compensation — Stock-based retailer incentive compensation was $8.9 million
for the year ended December„31, 2014, an increase of $0.2 million, or 2%, from the comparable period in 2013. Our
right to repurchase lapsed as to 441,720 shares issued to Walmart during the year ended December„31, 2014. We
recognized the fair value of the shares using the then-current fair market value of our Class„A common stock. The
increase was the result of a higher average stock price in the year ended December„31, 2014 compared with the
corresponding period in 2013.
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